Depreciation Recapture Tax Question

[allanb]

California,
I inherited the property in August of 2008. We appraised it for tax purposes and it appraised then at $1,250,000. I have depreciated the property about $108,000 to date. I am a Realtor/Broker and currently am ready to accept an offer from a buyer who has no agent representing him. So there will be no Realtor fees involved. Escrow fees will be about $5,000. The sales price will be $910,000. The commercial Real Estate market here still is in the dumps. Seeing as I will have capital gains loss, will my Depreciation Recapture Tax be zero.
Thanks In Advance for your replies,
Al

 

[LdiJ]

California,
I inherited the property in August of 2008. We appraised it for tax purposes and it appraised then at $1,250,000. I have depreciated the property about $108,000 to date. I am a Realtor/Broker and currently am ready to accept an offer from a buyer who has no agent representing him. So there will be no Realtor fees involved. Escrow fees will be about $5,000. The sales price will be $910,000. The commercial Real Estate market here still is in the dumps. Seeing as I will have capital gains loss, will my Depreciation Recapture Tax be zero.
Thanks In Advance for your replies,
Al

It looks like your reduced basis (reduced by the amount of depreciation) is 1,142,000. Since even after the reduction of basis you will still be selling at a loss, it looks like you are correct that your depreciation recapture will be zero.